Question: Question 7 2 points Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and

Question 7 2 points Suppose that the current one-year rate and expected one-year T-bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows: IRI1.67%, E(21) 3.92%, E(3rl) - 5.52%, E(41) -7.23% Using the unbiased expectations theory, calculate the current (long-term) rates for four-year-maturity Treasury securities (Write your answer in percentage and round it to 2 decimal places) Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $9.999,04 with the promise to buy them back at a price of $10.000.050. Calculate the yield on the report has a 3-day maturity (write your answer in percentage and found it to 2 decimal places)

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